Coming up trumps in a new year of politics

"I want to tell the world community that while we will always put America's interests first, we will deal fairly with everyone."

Just how US president-elect Donald Trump defines America's interests and how to "deal fairly" will have a major impact on Australian politics in 2017 - from the economy to climate, immigration and defence.

Prime Minister Malcolm Turnbull ended 2016 with some significant policy victories in delivering on promises made at the July election.

The two double-dissolution triggers - restoring the building industry watchdog and new checks on union and employer group misconduct - showed Turnbull could work with the rag-tag crossbench his new Senate election rules and a lower voting quota created.

He was also rescued from defeat on the backpacker tax by the Greens, as they did on multinational tax avoidance laws a year earlier.

Heading into the new year, Turnbull hasn't been able to deliver on one of his core election promises - cutting the company tax rate to generate new investment and jobs.

Liberal Democrats senator David Leyonhjelm says the tax cut will be easier to sell if Trump goes ahead with his plan to take the burden off American businesses.

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"As he brings down the rate in America, then it will expose Australia as a high tax environment for business," Senator Leyonhjelm told AAP.

The need to be globally competitive will convince Senate cross benchers to pass the tax cuts in 2017, but Turnbull will struggle "until Trump succeeds".

Another flashpoint for the government will be energy security and electricity prices.

Blackouts and higher power bills have Australians scratching their heads about what's happening in the sector.

The government is reviewing its climate policy including the direct action plan and the renewable energy target, which many blame on pushing up power prices.

Political pressure is coming from climate sceptics within the coalition and One Nation, with Pauline Hanson's party - buoyed by the rise of populist leaders worldwide - setting its sights on Queensland and West Australian elections in 2017.

But ironically that political pressure, coupled with Trump's climate denialism and the possibility of the Paris agreement being upturned, could provide a cover for Turnbull to take it slow on changing policy settings.

Turnbull himself has pointed the finger at states which have set over-enthusiastic renewable energy targets, giving him some room to move - despite having previously supported an emissions trading scheme.

The behaviour of unions will be a key issue for 2017.

Two watchdogs - the Australian Building and Construction Commission and Registered Organisations Commission - will start work in addressing industrial "lawlessness".

But for all the potential for fines and jailings for misconduct, the real question is whether unions are up for what could best be described as cultural change.

In terms of the Senate, 2016 has proven a number of things.

The government can no longer rely on the votes of Derryn Hinch - for his erratic behaviour and reneging on agreements even with the prime minister - and Jacqui Lambie, who has thrown her lot in with Labor.

One Nation's Rod Culleton will more than likely find himself out of parliament through either High Court action or creditors seeking their pay day.

Budget repair will remain a hot topic.

Within the coalition there are concerns not enough is being done to wind back middle-class welfare and cut duplication with the states, especially in health and education.

"Budget repair is an economic imperative. It is also a moral imperative", says veteran Liberal senator Eric Abetz.

He argues the government must do its best to make budget repair a "popular concept" in 2017.

Turnbull has been good at the big picture stuff which is the lot of all good prime ministers, but Bill Shorten has beaten him in the day-to-day politics.

Shorten has proven himself to be agile and kept Labor ahead in the polls for much of the post-election period.

In 2017, Shorten's never-ending election campaign will roll on, with a focus on Queensland and WA.

Labor's trump card is the government's slender, one-seat majority, which will make 2017 a tightrope walk for Turnbull.